On 29 October 2020, the Federal Tax Administration published the circular "Instruction sheet on the withholding tax on substitute income" (2-186-D-2020-e). This leaflet has been completely revised in the course of the provisions on the revision of withholding tax that will come into force on 1 January 2021.
Both the totally revised ordinance on withholding tax for direct federal tax(QStV) and Kreisschreiben 45 (see our contribution of 15 June 2019) served as a basis.
The most important changes are taxation with tariff code G for replacement income not paid out via the employer and the specifications for determining the income determining the rate.
All FTA circulars are available here.
